Ronald Wastewater District saves money by paying off debt

Wednesday, January 19, 2011

from Ronald Wastewater District

Ronald Wastewater District Commissioners have decided to use available cash to pay off the District’s 2001 Sewer Revenue Bonds. The 2001 Sewer Revenue Bonds had outstanding interest rates that ranged from 4.30% to 5.00%. By paying off the debt, the District is saving $670,000 over the remaining ten years of the loan.  (Information in the preceding paragraph was corrected at the request of the Ronald Sewer District.)

According to Board President Arthur Wadekamper, the District had considered refinancing the Bonds.
“Right now the savings are much greater when debt can be paid off. Currently, the King County Investment Pool rates are very low, so it made more sense to pay off the higher interest cost debt with available cash.”
Board Vice President Brian Carroll, a CPA, explained that
 “the District now has little debt and is in a very strong financial position compared to other water and sewer districts and municipal utility systems.”
If the Commissioners decide to issue bonds in the future, the District will likely achieve a higher bond rating grade and obtain a lower interest rate as a result of paying off the 2001 Bonds. This will result in a lower interest cost to the ratepayers of Ronald Wastewater District.

Any future money from a bond sale could be for the replacement of aging sewer pipes, to keep the District's financial reserves intact, or to fund other capital expenditures.

For more information, Contact Michael U. Derrick, General Manager, 206-546-2494.

Ronald Wastewater District has been providing sewer service for 60 years.
We are your partner in environmental stewardship.


Anonymous,  January 20, 2011 at 8:54 AM  

Thank you for making wise decisions using our money!

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